Section 2 The Age of the Railroads Chapter 6 Section 2 The Age of the Railroads

Focus Questions How did the growth of the railroad industry benefit the nation? What were the negatives of this dramatic growth? How did the government help the railroad industry? How did the government help the workers on the railroads?

Opportunities Growth of iron, coal, steel, lumber and glass industries Growth of towns Establish new markets Chances to make $$$$$$

Pullman employee in the town of Pullman? Lived in well built houses or apartments Doctors’ offices, shops However, Pullman strictly regulated behavior

Credit Mobilier Stockholders in the Union Pacific Railroad created a construction company They charged too much for the railroad construction Paid themselves and government officials

Native American attacks Workers largely immigrants from China, Ireland Workers Issues Accidents Diseases Native American attacks Workers largely immigrants from China, Ireland Low wages

Farmers’ Issues Used land grants to sell to businesses other than settlers Fix prices Charged different customers different prices where there was no alternative choices

The Government and the Courts get involved Grangers push for railroad regulatory laws 1877 (Munn v. Illinois) States won the right to regulate for benefit of farmers and consumers However, 1886 the Supreme Court rule that states can’t set rates on interstate commerce 1887 Interstate Commerce Act passed Railroads continue to resist and willing to fight a long legal process 1897 Supreme Court rules that ICC can’t set maximum rates

“The Modern Colossus of Railroads” All freight seeking the seaboard must pass here and pay any tolls we demand.